New Issue: NeoMedia sells $7.45 million of convertible debentures

By Sheri Kasprzak

New York, April 3 - NeoMedia Technologies, Inc. closed a private placement for $7,458,651 in secured convertible debentures with Cornell Capital Partners, LP.

The 13% debentures are due March 27, 2009 and are convertible into common shares at the lesser of $0.05 each or 90% of the lowest volume weighted average price of the company's stock for the 30 trading days before conversion.

Cornell received warrants for 125 million shares, exercisable at $0.04 each through March 27, 2012.

NeoMedia, based in Fort Myers, Fla., develops technologies that link physical information and objects to the internet.

Issuer:	NeoMedia Technologies, Inc.
Issue:	Secured convertible debentures
Amount:	$7,458,651
Maturity:	March 27, 2009
Coupon:	13%
Price:	Par
Yield:	13%
Conversion price:	The lesser of $0.05 or 90% of the lowest VWAP for the 30 trading days before conversion
Warrants:	For 125 million shares
Warrant expiration:	March 27, 2012
Warrant strike price:	$0.04
Investor:	Cornell Capital Partners, LP
Settlement date:	March 27
Stock symbol:	OTCBB: NEOM
Stock price:	$0.05 at close March 27

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